12 Feb 2014
Flash: EUR BPI has potential to remain constructive - FXStreet
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that the USD Bullish Percentage Index has only 20% of its components in a bullish mode, this means that the currency is trending down against a basket of more than 20 world currencies when measured in a Point and Figure chart.
Key Quotes
“In turn, Euro-based pairs have recovered above the 50% line at the start of the week, gave ground reluctantly thereafter but the index still indicates 47% of eur-based pairs are appreciating.”
“This has special implications for EUR/JPY, which we covered several weeks ago in an opposite scenario. In this occasion the vulnerability is to the upside, should the EUR-BPI sustain a 50% line break and reach the 70% mark by end of the week. On the other side of the cross, the yen is still dramatically oversold and unable to unwind from these levels (5%).”
“The GBP has triggered a bullish dynamic across a plethora of pairs. Against the AUD it's strongly oversold on daily measures but on the intraday charts the recent sideways action has morphed into a potential double bottom.”
“Against the USD the Sterling is, albeit overstretched, rubbing shoulders with late December's levels and overcoming these will let it swinging in the breeze at multi-year highs.”
Key Quotes
“In turn, Euro-based pairs have recovered above the 50% line at the start of the week, gave ground reluctantly thereafter but the index still indicates 47% of eur-based pairs are appreciating.”
“This has special implications for EUR/JPY, which we covered several weeks ago in an opposite scenario. In this occasion the vulnerability is to the upside, should the EUR-BPI sustain a 50% line break and reach the 70% mark by end of the week. On the other side of the cross, the yen is still dramatically oversold and unable to unwind from these levels (5%).”
“The GBP has triggered a bullish dynamic across a plethora of pairs. Against the AUD it's strongly oversold on daily measures but on the intraday charts the recent sideways action has morphed into a potential double bottom.”
“Against the USD the Sterling is, albeit overstretched, rubbing shoulders with late December's levels and overcoming these will let it swinging in the breeze at multi-year highs.”